- Published: 29.05.2015.
Croatian economy grows 0.5% in the first quarter of 2015
The Croatian economy grew by 0.5 per cent in the first quarter of 2015 in comparison with the same period of 2014, which is more than expected and confirms that the economy has emerged from recession after six years of downturn.
The National Bureau of Statistics (DZS) issued an initial estimate on Friday according to which GDP in the first quarter of the year had grown 0.5% year on year.
This was a much better result than expected. Eight economic analysts polled by Hina had forecast an average growth of 0.1%. Five of them expected growth of between 0.2% and 0.3%, one predicted stagnation, and two a contraction of 0.2% to 0.3%.
This is the second quarter in a row that GDP has grown, after increasing by 0.3% in the final quarter of 2014, which is definitive confirmation that the national economy has emerged from recession after six years of downturn.
According to the DZS press release, the GDP growth was fuelled by domestic demand and retail sales that had been growing for eight months in a row.
The growth was also influenced by a rise in net foreign demand.
In the first quarter of 2015, Croatia's exports totalled HRK 19.3 billion, a rise of 7.5% compared to Q1 2014. The rise was on the back of the accelerated growth of the economy in the European Union, Croatia's biggest trading partner. Relatedly, Croatia's industrial production increased 0.3% in Q1 2015.
DZS head Marko Kristof told a news conference that Croatia's seasonally adjusted GDP in Q1 2015 also rose by 0.01% compared to Q4 2014.
Kristof said that Gross Domestic Value increased 0.3% in Q1 2015 compared to Q4 2014. "Thus the trend is relatively close to zero, but there have been positive developments," he said.
(Text: HINA)